First world country as claimed
by the ruling party is not the "gateway to Asia".
S'pore's 'gateway to Asia' tag takes a beating
- Aug 5, 2008, The Straits Times
Jetro survey shows global investors prefer Japan, Hong
Kong and China for HQ
A RECENT poll of global investors shows Singapore is not
considered the great gateway to Asia it is often said to be.
The Business Times reported on Tuesday that investors put
Singapore behind Japan, Hong Kong and China in that role.
'Despite its world-renowned gateway position, our survey
indicates that Singapore has been unable to attain the highest
attractiveness score for HQ and logistics activities, ranking just
behind Japan,' the Japan External Trade Organisation (Jetro) says
in a report.
Singapore got 14 per cent of votes from investors polled on what
they believe is the most attractive location for a headquarters in
Asia. That compared with Japan's 20 per cent, making it the No 1
choice.
Hong Kong (17 per cent) was seen as the second most attractive
location, followed by China (15 per cent).
As for the most competitive logistics hub, China (35 per cent)
topped the league, ahead of Hong Kong (12 per cent) and Japan (9
per cent). Singapore polled on par with India (8 per cent
each).
<!-- show media links starting at 7th para -->The poll was
commissioned by Japan's Ministry of Economy, Trade and Industry to
gauge how global business leaders view Japan as a location for
foreign direct investment (FDI), compared to its Asian
competitors.
Carried out by consulting firm Ernst & Young from February
to April, the poll covered 209 senior executives, more than half of
them financial and sales and marketing directors and about a
quarter of them chief executives.
But what investors say and do can differ. Jetro's poll also
shows that while Japan is ranked the most attractive Asian country,
with China, for FDI, Singapore outdid Japan last year when it came
to committed FDI projects.
Jetro points out that Japan secured only 166 FDI projects in
2007, against Singapore's 239 and China's 1,171, India's 676 and
Vietnam's 260. 'Japan's positive image has yet to be matched in
actual foreign direct investments,' says Jetro.
Still, according to Jetro, the poll shows Japan and China are
locked in a battle to be the most attractive destination for FDI in
Asia.
Some 54 per cent of poll respondents - split evenly at 27 per
cent each - consider Japan and China the top bets for their
investment money. India came next with 11 per cent, followed
closely by Singapore and Hong Kong (10 per cent each).
But Jetro says Japan clearly wins on the quality front, with
investors polled putting it ahead of its Asian competitors in terms
of labour skills, research and development, quality of life,
transparency and stability, transport and logistics, and
telecommunications infrastructure.
Japan fell behind only in labour costs, in which China came out
tops. China was also ranked top for offering investors the most
attractive domestic market, while Japan was second.
Singapore was singled out as least favourable in terms of labour
costs, but was deemed to be the second most competitive location in
terms of corporate tax - even ahead of Hong Kong, which boasts a
lower tax rate. China was seen as the most competitive in terms of
corporate tax.
Singapore was rated the third most attractive location for
transparency and stability for political and legal environments -
after Japan and China.
